Blue Company's bank reconciliation for January 31, 2020 does not balance. Cash balance per bank   $5,300 Add: NSF check   1,490 Less: Bank service charge   25 Adjusted balance per bank   $6,765       Cash balance per books   $5,905 Less: Deposits in transit   950 Add: Outstanding checks   1,860 Adjusted balance per books   $6,815

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Blue Company's bank reconciliation for January 31, 2020 does not balance.

Cash balance per bank  
$5,300
Add: NSF check  
1,490
Less: Bank service charge  
25
Adjusted balance per bank  
$6,765
     
Cash balance per books  
$5,905
Less: Deposits in transit  
950
Add: Outstanding checks  
1,860
Adjusted balance per books  
$6,815

(a)

 
 
Prepare a correct bank reconciliation. (List items that increase cash balance first.)

BLUE COMPANY
Bank Reconciliation
                                                                       For the Month Ended January 31, 2020January 31, 2020For the Year Ended January 31, 2020
                                                                       Cash balance per bank statementDeposits in transitBank service chargeNSF checkOutstanding checksAdjusted cash balance per bank      
                                                                       LessAdd:                                                                         Cash balance per bank statementAdjusted cash balance per bankBank service chargeNSF checkDeposits in transitOutstanding checks      
 
         
 
                                                                       LessAdd:                                                                         Bank service chargeAdjusted cash balance per bankCash balance per bank statementOutstanding checksNSF checkDeposits in transit      
 
                                                                       Bank service chargeOutstanding checksCash balance per bank statementNSF checkDeposits in transitAdjusted cash balance per bank      
           
                                                                       Outstanding checksNSF checkBank service chargeCash balance per booksDeposits in transitAdjusted cash balance per books      
                                                                       AddLess:           
                                                                         Bank service chargeDeposits in transitOutstanding checksCash balance per booksAdjusted cash balance per booksNSF check  
   
                                                                         Outstanding checksCash balance per booksDeposits in transitNSF checkBank service chargeAdjusted cash balance per books  
 
   
         
 
                                                                       Outstanding checksCash balance per booksDeposits in transitNSF checkAdjusted cash balance per booksBank service charge      
 
 
 
 
 
 
 
 
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